The US Federal Reserve has appointed Jerome Powell as its new chairman, replacing Janet Yellen whose term ends in February 2018.

Powell is currently serving as governor of the central bank. Prior to that, he served as assistant secretary and undersecretary of the treasury under President George Bush and was a partner at The Carlyle Group.

The appointment of Powell to the new role is subject to approval by the senate.

Commenting on the appointment, Powell said: “In the years since the global financial crisis ended, our economy has made substantial progress toward full recovery. By many measures we are close to full employment, and inflation has gradually moved up toward our target. Our financial system is without doubt far stronger and more resilient than it was before the crisis. Our banks have much higher capital and liquidity, are more aware of the risks they run, and are better able to manage those risks.

“While post-crisis improvements in regulation and supervision have helped us to achieve these gains, I will continue to work with my colleagues to ensure that the Federal Reserve remains vigilant and prepared to respond to changes in markets and evolving risks.”